management approach disclosure - orocobre
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clean waterand sanitation6
M A N A G E M E N TA P P R O A C H
D I S C L O S U R E
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Water and Effluents*
Related Performance Data
+ Design and implement the plan to conform to the UN Global Compact
CEO Water Mandate at Olaroz Lithium Facility.Future Commitments
Other related documents
Environment
Related Material topics Water Extraction and Basin Management
Sustainable Development Policy; Environmental Policy
Related GRI Contents
Related SustainableDevelopment Goals
SDG 6
103-1; 103-2; 103-3
Strategic significance
Ensuring long-term water availability is a critical
consideration for companies across all industries
particularly given changing climatic conditions and
increasing demands on the world’s scarce natural resources.
The Olaroz Lithium Facility is located in a region
classified by the WRI Aqueduct Tool1 as having low
water stress and low overall water risk. This
classification is not projected to change through to
2030, even based on the most pessimistic climate
forecast scenario. This sets our operations apart from
those in areas classified as high water stress such as the
Atacama region of Chile. The Olaroz Lithium Facility
does not draw on surface water or fresh groundwater.
There are two sources of water extraction at the Olaroz
Lithium Facility Operations.
1. Brine Extraction: Saline solution (brine) is extracted
from bores and pumped into evaporation ponds. Brine
has a salt concentration of ~330g/L (sea water has 36g/L)
so is far too saline to be considered a water resource.
2. Industrial Groundwater: the lithium carbonate production
process and technology have one of the lowest water
consumption ratios in the industry. Approximately 95%
of the groundwater extracted is treated for use in the
production process, while the remaining 5% percent is
used to maintain access roads and other infrastructure,
to support camp activities or to provide suitable living
conditions for the Company’s workforce.
Our Borax Argentina operations are carried out at three
sites, two of which (Tincalayu and Sijes mines), are
located at approximately 4,000m elevation in the Puna
with the third site at Campo Quijano, approximately
1500m above sea level.
The Tincalayu site comprises an open cut mine where
tincal ore is mined and a plant where the tincal ore is
processed to produce borax chemicals. Water for use in
both industrial and domestic (toilets and general
cleaning only) purposes is extracted from the Vega
Chuculaqui and Vega Bequeville surface sources with
licenses approved by the provincial government.
The Sijes mine is in the Pozuelos - Pastos Grandes basin
and comprises an open cut mine to extract the
hydroboracite ore and a concentrator where the ore is
upgraded to a variety of hydroboracite mineral
concentrates. The beneficiation processes implemented
at this site do not require water and the only water
extraction that occurs here is for domestic purposes at
the camp.
The Campo Quijano facility is located on the edge of the
town of Campo Quijano. The Campo Quijano plant uses
the water utility network for domestic consumption, and
a groundwater well for industrial use. The water quality
at the Campo Quijano plant is monitored on an ongoing
basis, both upstream and downstream from our
operations. These sites are all currently classified in a
region with low water stress and low overall water risk
by the WRI Aqueduct Tool.
For Orocobre, ensuring responsible, efficient, and
transparent management of water resources is essential
to maintain our social licence to operate in the region.
We recognise that access to clean water and sanitation
is a long-standing development issue in some local
communities. While operations do not impact negatively
on this, Orocobre acknowledges the unique opportunity
to help address this issue through targeted programs
and initiatives.
(*) This Document is part of Orocobre's Sustainability Report and should be understood as part of itslef.Understanding Sales de Jujuy as Sales de Jujuy S.A., SDJ or Olaroz Lithium Facility and Borax Argentina as Borax Argentina S.A or BRX.1 https://www.wri.org/aqueduct
https://www.wri.org/applications/aqueduct/water-risk-atlas/#/?advanced=false&basemap=hydro&geoStore=0103742d088cc8b722ac444ed9163f79&indicator=bws_cat&lat=-24.320741398399974&lng=-65.09124755859376&mapMode=analysis&month=1&opacity=0.5&ponderation=DEF&predefined=false&projection=absolute&scenario=optimistic&scope=baseline&timeScale=annual&year=baseline&zoom=13
https://www.wri.org/applications/aqueduct/water-risk-atlas/#/?advanced=false&basemap=hydro&geoStore=0103742d088cc8b722ac444ed9163f79&indicator=bws_cat&lat=-24.320741398399974&lng=-65.09124755859376&mapMode=analysis&month=1&opacity=0.5&ponderation=DEF&predefined=false&projection=absolute&scenario=optimistic&scope=baseline&timeScale=annual&year=baseline&zoom=13
https://www.un.org/sustainabledevelopment/water-and-sanitation/
https://www.orocobre.com/wp/?mdocs-file=7259
https://ceowatermandate.org/
https://www.orocobre.com/wp/?mdocs-file=4986 https://www.orocobre.com/wp/?mdocs-file=4779
Impact boundary
This management approach disclosure refers to the activities of both Sales de Jujuy S.A. (Olaroz Lithium Facility) and
Borax Argentina S.A.
Orocobre does not report on supplier performance with regards to water consumption. However, total consumption
figures reported include supplier related activity on site (excluding water for human consumption which is purchased
and transported onto site).
Information relating to mineral process waste and storage facilities is included in the Waste Management Approach
disclosure.
Access to clean water and sanitation in local communities is treated independently from the Company’s operational
management of water resources. Detailed information regarding performance in this area can be found in the
Community Investment disclosure.
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02
Management Systems
Both Orocobre’s operations have an ISO certified
Environmental Management System (ISO14001) which sets
out the approach to water and effluent management.
The Company regularly reviews opportunities for
consumption reduction as part of our continuous
improvement program which allows all employees and
site-based operators to propose opportunities for
improved performance across all aspects of operations.
Olaroz Lithium Facility does not discharge water into
surface water sources. Effluents are treated and reused
on-site or transported to a treatment plant in the province
of Jujuy. Managing effluents on-site more efficiently
makes it possible to increase the amount of water to be
reused for road construction and maintenance and to
significantly reduce groundwater extraction.
Borax Argentina implements different processes to treat
effluents:
• In Tincalayu, domestic effluents are treated using a
system of chambers and biodigesters, and then
discharged through combs (sand-based filtering tubes)
on a filter bed (soil). The parameters for these effluents
are within allowable limits.
Management approach
As part of Orocobre’s commitment to advancing on the UN’s Sustainable Development Goals, and in line with SDG 6:
Clean Water and Sanitation, the Company is constantly seeking to: 1) increase water-use efficiency, and 2) protect
water-related ecosystems.
The following policies outline Orocobre’s commitment to water and effluent management:
• Environmental Policy
• Sustainable Development Policy
The company is also planning to align with the CEO Water Mandate, which is a UN Global Compact initiative promoting
action across six key elements: direct operations, supply chain and watershed management, collective action, public
policy, community engagement and transparency.
• The treatment system implemented in Sijes uses
septic tanks. A compact effluent treatment plant will
soon be installed to improve quality before discharging
into Sijes River. The Sijes River and its related habitat
are within two reserves of provincial jurisdiction set by
executive order, which do not have any waste
requirements defined by the authorities. However,
Borax Argentina internally implements actions aimed at
protecting the surrounding biodiversity and impacting
as little as possible on the existing ecosystem.
• In Campo Quijano, although located in an urban area,
there is no sewage service and domestic effluent is
managed through a traditional septic tank system with
external waste emptying services when required.
Monitoring and Reporting
Orocobre evaluates the effectiveness of its management
approach through regular monitoring and reporting of
key data metrics and tracking progress against
predefined objectives and targets. Internal data and
reporting processes include daily operational updates,
weekly operational performance reviews and monthly
reporting on progress against operational targets.
clean waterand sanitation6
https://www.un.org/sustainabledevelopment/water-and-sanitation/
https://www.un.org/sustainabledevelopment/water-and-sanitation/
https://www.orocobre.com/wp/?mdocs-file=4986
https://www.orocobre.com/wp/?mdocs-file=4779
https://www.orocobre.com/wp/?mdocs-file=7243
https://www.orocobre.com/wp/?mdocs-file=7237
https://ceowatermandate.org/
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Olaroz Lithium Facility started operating in 2015 and has
been continually improving the structure and
management of water data to enable more detailed
insights into consumption patterns. Water performance
is reported annually in the Orocobre Sustainability
Report and also in response to investor surveys such as
S&Ps Corporate Sustainability Assessment (formerly
DJSI/RobecoSAM) and the CDP Water Disclosures.
In Borax Argentina the quality of surface and
underground water as well as of the industrial and
domestic waste water is monitored on an annual basis.
These reports are submitted to the Office of the
Secretary of Mining. FY20 is the first year that we have
included key environmental performance indicators for
Borax Argentina in Orocobre’s Sustainability Report.
Short, medium, and long-term reduction targets are
defined and monitored by Orocobre’s Executive team in
collaboration with the relevant operational teams.
Responsibility
For Olaroz Lithium Facility, at an operational level,
responsibility for water extraction initiatives and the
maintenance of local water ecosystems sits with the
Director of Hydrogeology. The Chief Operating Officer
has responsibility for water consumption and
operational efficiency, including the evaluation and
implementation of reduction initiatives.
The Risk Management Manager monitors water
performance and works in close collaboration with other
departments including (Hydrogeology, Processes and
Strategic Projects) to identify and evaluate
opportunities for performance improvement.
For Borax Argentina the Production Superintendent and
the risk management areas are responsible for
measuring the consumption and extraction of water
from underground, surface, and utility sources.
Accountability
In accordance with the commitments defined in the
CEO Water Mandate, the Company is integrating KPIs
into the performance evaluation process for specific
managers and employees at an operational level.
Orocobre’s Executive performance assessment
processes are also being reviewed to incorporate
water-related performance into their short term and
long-term incentive criteria.
FY20 update
SALES DE JUJUY (Olaroz Lithium Facility)
In FY20 total industrial water extraction was 678,353
m3, approximately 13,000 m3 less than in FY19.
Operational water intensity (i.e. the amount of water
extracted exclusively for operations per ton of lithium
carbonate produced) improved considerably with a
reduction from 48.16 m3/t to 43.00 m3/t.
Before the COVID-10 pandemic, there was a significant
increase in the number of personnel on site due to the
increase in activities associated with the Phase 2
Expansion project. Olaroz Lithium Facility has therefore
been ensuring adequate site-based infrastructure is in
place to manage the additional effluents generated.
Aproximately 111,190 m3 of industrial water were
recirculated and reused. This represents 16.4% of the
volume of water extracted.
During FY20, the sewerage treatment plant (STP)
reached optimum operation. An engineering study was
also completed for the installation of a new sewage
system designed to improve the quality of the effluent
entering the treatment plants.
Progress was made with the installation of sixteen
flowmeters in the operating area. The flowmeters will
improve the quantification and collection of
consumption data, and the evaluation and
implementation of new water saving technologies and
process improvements to reduce operational water
intensity. In addition, electrical retrofits were made
ready to complete the mechanical assembly of 30
flowmeters that will be installed in February 2021.
Operational Water Intensity(m3/t LCE)
Effluents treated on site
INDICATOR
Preliminary targets
< 45 < 35
100% 100%
FY25 FY30
In FY20 52% of waste water effluents were treated on site. This value is calculated as difference between the amount of effluent taken to final handling in San Salvador de Jujuy and the total injected into the treatment system at Olaroz Lithium Facility. Data available for approximately 4 months from stage 2 (expansion project).
Annual performance data is available on the Orocobre
website.
https://www.orocobre.com/wp-content/uploads/2021/02/OROCOBRE-Sustainability-Report-2020_Web_Final.pdf
https://www.orocobre.com/wp-content/uploads/2021/02/OROCOBRE-Sustainability-Report-2020_Web_Final.pdf
https://www.orocobre.com/wp-content/uploads/2021/02/OROCOBRE-Sustainability-Report-2020_Web_Final.pdf
https://www.orocobre.com/wp/?mdocs-file=7259
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04
BORAX ARGENTINA
During FY20, Borax Argentina’s Operations and Strategic Project Management groups have been evaluating water
and effluent reuse, recirculation, and treatment options to manage this resource more efficiently.
Domestic Effluents
In monitoring performed in FY20, BOD (Biological Oxygen Demand) and COD (Chemical Oxygen Demand) values
were within the limits set forth in Resolution 011/01 issued by the Office of the Secretary of Environment of the
province of Salta. In addition, a study was carried out in Sijes field, where samples of phytoplankton, phytobenthos
and zooplankton were analysed. The algal community of the surface bodies analysed showed the species richness
and composition are typical of environments of the Puna and the High Andes, with no signs of pollution.
The Sijes River receives effluents in full compliance with the applicable environmental laws. A description of how
these impact on this water body is included below:
Monitoring
Water and effluent quality monitoring are performed on an annual basis and the reports are submitted to respective
provincial mining authority. The first semi-annual monitoring (previously performed on an annual basis) was scheduled
for the second half of FY20. The monitoring will involve people from the local Community. Due to COVID-19, this
activity has been delayed in the reporting period.
For additional information on water and effluents, see Environmental Performance Data.
Area occupied by the surface water body from dischargeto the infiltration area.
Distance from discharge to the infiltration area
Surface
Course
Surface
1
2
3
No Detail Description Measurement
1.19 ha
1.66 km
Area occupied by the distal portion of the river infiltrationin Sijes river lower basin
51,43 ha
https://www.orocobre.com/wp/?mdocs-file=7259
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